2,181 research outputs found

    Generalized backward induction: Justification for a folk algorithm

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    I introduce axiomatically infinite sequential games that extend Kuhn’s classical framework. Infinite games allow for (a) imperfect information, (b) an infinite horizon, and (c) infinite action sets. A generalized backward induction (GBI) procedure is defined for all such games over the roots of subgames. A strategy profile that survives backward pruning is called a backward induction solution (BIS). The main result of this paper finds that, similar to finite games of perfect information, the sets of BIS and subgame perfect equilibria (SPE) coincide for both pure strategies and for behavioral strategies that satisfy the conditions of finite support and finite crossing. Additionally, I discuss five examples of well-known games and political economy models that can be solved with GBI but not classic backward induction (BI). The contributions of this paper include (a) the axiomatization of a class of infinite games, (b) the extension of backward induction to infinite games, and (c) the proof that BIS and SPEs are identical for infinite games

    High-Precision Numerical Simulations of Rotating Black Holes Accelerated by CUDA

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    Hardware accelerators (such as Nvidia's CUDA GPUs) have tremendous promise for computational science, because they can deliver large gains in performance at relatively low cost. In this work, we focus on the use of Nvidia's Tesla GPU for high-precision (double, quadruple and octal precision) numerical simulations in the area of black hole physics -- more specifically, solving a partial-differential-equation using finite-differencing. We describe our approach in detail and present the final performance results as compared with a single-core desktop processor and also the Cell BE. We obtain mixed results -- order-of-magnitude gains in overall performance in some cases and negligible gains in others.Comment: 6 pages, 1 figure, 1 table, Accepted for publication in the International Conference on High Performance Computing Systems (HPCS 2010

    The economic effects of special purpose entities on corporate tax avoidance

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    This study provides the first large‐sample evidence on the economic tax effects of special purpose entities (SPEs). These increasingly common organizational structures facilitate corporate tax savings by enabling sponsor‐firms to increase tax‐advantaged activities and/or enhance their tax efficiency (i.e., relative tax savings of a given activity). Using path analysis, we find that SPEs facilitate greater tax avoidance, such that an economically large amount of cash tax savings from research and development (R&D), depreciable assets, net operating loss carryforwards, intangible assets, foreign operations, and tax havens occur in conjunction with SPE use. We estimate that SPEs help generate over $330 billion of incremental cash tax savings, or roughly 6% of total U.S. federal corporate income tax collections during the sample period. Interaction analyses reveal that SPEs enhance the tax efficiency of intangibles and R&D by 61.5% to 87.5%. Overall, these findings provide economic insight into complex organizational structures supporting corporate tax avoidance.Accepted manuscrip

    A Dynamic Game Analysis and Design of Infrastructure Network Protection and Recovery

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    Infrastructure networks are vulnerable to both cyber and physical attacks. Building a secure and resilient networked system is essential for providing reliable and dependable services. To this end, we establish a two-player three-stage game framework to capture the dynamics in the infrastructure protection and recovery phases. Specifically, the goal of the infrastructure network designer is to keep the network connected before and after the attack, while the adversary aims to disconnect the network by compromising a set of links. With costs for creating and removing links, the two players aim to maximize their utilities while minimizing the costs. In this paper, we use the concept of subgame perfect equilibrium (SPE) to characterize the optimal strategies of the network defender and attacker. We derive the SPE explicitly in terms of system parameters. Finally, we use a case study of UAV-enabled communication networks for disaster recovery to corroborate the obtained analytical results.Comment: 6 page

    Microsimulation - A Survey of Methods and Applications for Analyzing Economic and Social Policy

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    This essential dimensions of microsimulation as an instrument to analyze and forecast the individual impacts of alternative economic and social policy measures are surveyed in this study. The basic principles of microsimulation, which is a tool for practical policy advising as well as for research and teaching, are pointed out and the static and dynamic (cross-section and life-cycle) approaches are compared to one another. Present and past developments of microsimulation models and their areas of application are reviewed, focusing on the US, Europe and Australia. Based on general requirements and components of microsimulation models a microsimulation model's actual working mechanism are discussed by a concrete example: the concept and realization of MICSIM, a PC microsimulation model based on a relational database system, an offspring of the Sfb 3 Statitic Microsimulation Model. Common issues of microsimulation modeling are regarded: micro/macro link, behavioural response and the important question of evaluating microsimulation results. The concluding remarks accentuate the increasing use of microcomputers for microsimulation models also for teaching purposes.Microsimulation, Microanalytic Simulation Models, Microanalysis, Economic and Social Policy Analysis

    A Formal Approach based on Fuzzy Logic for the Specification of Component-Based Interactive Systems

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    Formal methods are widely recognized as a powerful engineering method for the specification, simulation, development, and verification of distributed interactive systems. However, most formal methods rely on a two-valued logic, and are therefore limited to the axioms of that logic: a specification is valid or invalid, component behavior is realizable or not, safety properties hold or are violated, systems are available or unavailable. Especially when the problem domain entails uncertainty, impreciseness, and vagueness, the appliance of such methods becomes a challenging task. In order to overcome the limitations resulting from the strict modus operandi of formal methods, the main objective of this work is to relax the boolean notion of formal specifications by using fuzzy logic. The present approach is based on Focus theory, a model-based and strictly formal method for componentbased interactive systems. The contribution of this work is twofold: i) we introduce a specification technique based on fuzzy logic which can be used on top of Focus to develop formal specifications in a qualitative fashion; ii) we partially extend Focus theory to a fuzzy one which allows the specification of fuzzy components and fuzzy interactions. While the former provides a methodology for approximating I/O behaviors under imprecision, the latter enables to capture a more quantitative view of specification properties such as realizability.Comment: In Proceedings FESCA 2015, arXiv:1503.0437
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